Insurance
How pet insurance works, in plain English
You pay a monthly premium. When your pet needs covered care, you pay the vet, send a claim, and the insurer pays back a percentage of the bill after your deductible, up to your annual limit.
Most plans reimburse you, not the vet
Unlike most human health insurance, the typical pet insurance plan works on reimbursement. You pay the clinic at checkout, submit the invoice, and the insurer sends money back to you. A few plans can pay some vets directly, so ask how it works before you choose.
The five terms that matter
- Premium: what you pay each month to keep the policy.
- Deductible: the amount you pay each year before the plan starts paying.
- Reimbursement rate: the share of each covered bill you get back after the deductible, often 70% to 90%.
- Annual limit: the most the plan will pay in a policy year.
- Waiting period: the time after you enroll before coverage starts.
What usually isn’t covered
Pre-existing conditions, meaning health problems that started before coverage began or during the waiting period, are generally excluded. Routine care such as vaccines and checkups usually needs a separate wellness add-on.
What sets your price
Premiums depend on your pet’s species, breed and age, the plan options you choose, and where you live. NYC rates tend to run higher than the national average because local vet costs are higher.
How many pets are insured?
Pet insurance is still uncommon in the U.S. According to NAPHIA’s 2026 State of the Industry Report, about 7 million pets were insured in the U.S. at the end of 2025, only about 4.3% of the country’s 163.6 million dogs and cats. The average U.S. accident and illness premium was $836 a year for dogs and $435 for cats.
Frequently asked questions
Does pet insurance pay the vet directly?
Usually not. Most plans reimburse you after you pay the vet and submit a claim. Some offer direct payment at participating clinics.
Does pet insurance cover pre-existing conditions?
Generally no. Conditions that began before coverage started or during the waiting period are usually excluded.
Why is pet insurance more expensive in NYC?
Premiums reflect local vet costs, and veterinary care in New York City costs more than in most of the country.